Market Overview

TikTok Owner Partners With State Media Firm To Offer Blockchain, AI Services In China

Share:
TikTok Owner Partners With State Media Firm To Offer Blockchain, AI Services In China

A subsidiary of Beijing-based internet company ByteDance has formed a joint venture with state-run media firm Shanghai Dongfang Newspaper Co Ltd, according to Reuters.

What Happened

The new company called Pengpai Audiovisual Technology (Jinan) Co Ltd will offer services related to artificial intelligence, blockchain technology, and software development, Reuters said, citing the company's filing.

The ByteDance subsidiary Beijing Liangzi Yuedong Technology Co Ltd will own 49% of the new venture, with Dongfang controlling the majority 51% stake, as reported by Reuters.

"The joint venture will focus on partnership in the digital rights of short videos," a ByteDance spokeswoman told Reuters.

Pengpai was established on December 10 in the Shandong province of China with a registered capital of $1.4 million, according to Reuters.

Why It Matters

The new venture, in partnership with a state-run company, comes at a time when ByteDance's video-sharing app TikTok is facing increased scrutiny in the U.S.

The social media app is being investigated by the U.S. Army, in response to the concerns raised by New York senator Chuck Schumer.

Earlier this month, a California college student filed a lawsuit against the company for allegedly sending her data to China.

ByteDance has denied the allegations of spying, saying that its data centers are located outside of China, and not subject to the country's law.

Posted-In: Beijing ByteDance ReutersCryptocurrency News Global Tech Media Best of Benzinga

 

Related Articles

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com